Without a bank: 30 billion BTC asleep out of Defi, is the development of the series the key to breaking stagnation?

The original address: Can Bitcoin Onsin flourish?

The original author: Jean -Paul Faraj, without a bank

Original translation: bitpushnews

Although the first rank in the market value of the cryptocurrency is occupied, Bitcoin’s participation in decentralized financing (Defi) is still relatively low, which leads to a deep discussion about its future role.

For more than a decade, Bitcoin was the cornerstone of the ecosystem for encryption – which was equipped for decentralization, control resistance, and scarcity that could be proven. However, despite the maximum dominant market for Bitcoin and its recent recovery in popularity, it is still largely separate from one of the most vibrant areas in the coding space – Defi.

According to the data of Bitcoin layers, Bitcoin is used with a value of only $ 30 billion (only 1.875 % of the total offer) in Defi. On the contrary, ETHEREUM has approximately $ 50 billion of ETH closed in Defi, which represents about 23 % of its supplies.

This gap highlights a fundamental contradiction in Bitcoin’s narration today: While BTC carries an enormous value, a few BTC are used on the chain to provide yield opportunities. This contrast leads a wave of innovation around wrapping, tricks, and other ways to bring bitcoin to the DEFI economy, and to launch ways to make BTC a fruitful capitalist balance.

Bitcoin layers: BTC Supply fragmented by the network, which indicates all BTC wrapped

The ETHEREUM ecological system of ETHEREUM has witnessed the emergence of tools for lending, tricks and trading. In contrast, the original bitcoin is still difficult to use it effectively, especially for new users. The times of slow transactions, changing fees are often high, and Bitcoin structure to the ability to program that supports ETHEREUM based applications.

With the maturity of the wider encrypted currency area, an important question arises: Can Bitcoin be useful useful in the economy in the chain? If so, how can we bring ordinary BTC holders to the barn without forcing them to move in a maze of bridges, symbols wrapped, and unfamiliar applications?

Problem: Bitcoin design for DEFI’s use

Bitcoin’s basic structure of high programming for smart contracts has not been improved today. The POW Proof mechanism (POW) gives priority to safety and decentralization on complex logical expressions-this design choice makes it a reliable value of value but also limits the ability to adapt to smart contracts and complex Defi applications. As a result, the original Bitcoin is struggling to integrate into compulsible financial ecosystems on public chains such as ETHEREUM and Solana.

In the past, we saw some solutions:

Coated bitcoin wrapped: Users convert BTC to the ERC-20 icon to reach the ETHEREUM. This provides the risk of custody, as symbolic liquidity may be transparent and not always supported 1: 1 by third -party trustees.

Dam Protocols: BTC crossing platforms allow to move to other ecosystems. However, the manual bridge adds friction, complexity and risk-especially for non-technical users.

Guard platforms: Central services such as Coinbase provides BTC’s return, but it requires users to lose the nursery and often pay revenues in points, stablecoins or distinctive symbols instead of BTC.

Each option comes with the challenges that weigh the basic bitcoin principles: safety, simplicity and user’s sovereignty.

Entry barriers: Why is the user experience still important

BTC accumulation in 2024, river.com

For Bitcoin holders, a curious about doing more assets (earn a return, or participate in the chain governance, or Defi attempt), entry paths remain fragmented and intuitive, often arduous. While the infrastructure has matured, the user experience is behind the knees, and the competitors are not just Blockchains but also tradfi.

This friction creates a large entry barrier. Most users do not want to become advanced users of Defi-they want to increase their clear value and BTC safely without moving in a maze of applications, bridges and protocols such as modern bitcoin buyers who have made large purchases outside the chain through the intermediaries, ETF products, and products such as Michael Saylor.

To transfer the next wave of users from simple bearers outside the chain to users on the chain, the tools need to eliminate this complexity while not sacrificing control, self -body or transparency. This is where emerging protocols and modern portfolio experiences begin to play a decisive role-which provides easy access to use to DEFI foundational functions while maintaining the basic bitcoin principles.

Better user experience is not just nice; It is a major infrastructure for the next stage of Bitcoin adopting.

New ways of return and productivity on BTC on the series

Many emerging solutions aim to make Bitcoin more useful in Defi-all with different bares:

1.

Pits such as Babylon and Lombard now offer Bitcoin return programs through bonus points or symbols, and are often achieved by exhausting/hacking, which can be usually replaced by interest or future air drops. These systems appeal to the first adopters and encoded indigenous people chasing AirDrops and the symbolic economy of the platform. These products often include BTC converting to BTC wrapped standards and lock assets in various programs/products to earn variable returns. For smart merchants on the chain, high returns can be obtained, but this requires a deeper understanding of how to use encrypted currencies, as well as to fill manual funds, winding and money.

Pros:

cons:

• Bets are not paid in BTC

• It often requires lock periods

• The long -term value of bonuses is unconfirmed

Developments such as Lightning, Rootstock (RSK), Alkanes and emerging layer solutions like Botanix and Starknet bring new, programming and speed functions to Bitcoin. These innovations allow the use of use cases such as fast payments, NFTS and similar smart nodes behavior. As a result, users can now reach a wide range of DEFI opportunities using BTC-such as networking by locking money, participating in market making or lending or transferring assets to support different coated BTC standards. With more difference on these networks, the ecosystem for Bitcoin’s revenue opportunities will continue.

Pros:

• It expands the use of Bitcoin

• It is in line with the Bitcoin structure

• A wide range of options for earning the yield on the chain

cons:

• It is still relatively early and partial

• It requires medium understanding to the applicant to benefit

• It needs large developed resources to build a lot of facilities already on other smart nodes chains

3. The integration of the smart wallet and the original BTC return

A portfolio like Braavos offers features that allow users to win the original BTC return without manually wrapping bitcoin or confiscating nursery. Users can invest BTC directly through their wallets without dealing with usual barriers or external barriers. Complex steps – such as deposits, wrap, bridges – smoothly in the background, are handled with BTC’s deployment of specific Defi strategies. This approach is easy to use to make BTC the return available to everyone, regardless of their artistic background or the encrypted currency experience.

Pros:

cons:

The largest image: the role of the sophisticated bitcoin on the chain

The narration on Bitcoin has long focused on the “value store” – a role that it accomplishes reliably. However, with the development of the economy in the series, pressure on Bitcoin to integrate into this emerging financial stack and provide its promise as an infrastructure for reliable payment.

To achieve this without sacrificing decentralization or user confidence, the new infrastructure must make these opportunities easily accessible without the need for technical experience or bargaining on Bitcoin’s basic principles.

This means:

• The return should give priority to BTC payments instead of derived assets

• The nursery should remain with users

• The complexity must be stripped away, and it is not transferred to users

Products such as Braavos, Lombard, Babylon and others mentioned in this article are how to achieve these ideas. Whether it is through production for users or combining bitcoin support in self -needs options and automating the complications behind this, it facilitates bitcoin holders to reach Defi without fully leaving the Bitcoin ecosystem.

Carry the gap with caution

Bitcoin’s transfer to the economy will not occur over the series overnight-and this should not happen. Caution, simplicity and self -self are an institution for the basic principles of Bitcoin. However, with more tools that respect these values ​​and provide new jobs, the role of BTC in the broader cryptocurrency economy is constantly developing.

The current challenge is to build open and safe systems, and most importantly – they can be accessed. If a billion users have to join through Bitcoin, they will need experiments that meet their current needs and acceptable for a broader user base.